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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
95
The table below summarizes RSU and PSU activity for the year ended December 31, 2011. The fair value of restricted stock
units is determined based on the number of units granted and the grant date price of common stock.
Outstanding as of December 31, 2010
Granted
Vested and released
Forfeited
Outstanding as of December 31, 2011
RSUs/PSUs
3,380,616
942,212
(840,518)
(161,055)
3,321,255
Weighted
Average Grant
Date Fair
Value
$ 21.45
36.43
25.40
25.23
25.41
Weighted
Average
Remaining
Contractual
Term (Years)
1.31
1.02
Aggregate
Intrinsic Value
(in millions)
$ 119
131
The total fair value of RSUs vested for the years ended December 31, 2011, 2010 and 2009 was $21 million, $5 million and
$1 million, respectively. As of December 31, 2011, there was $38 million of unrecognized compensation costs related to nonvested
RSUs and PSUs granted under the DPS stock plans. That cost is expected to be recognized over a weighted-average period of
1.00 years.
Modifications of Share-Based Awards
On October 26, 2009, the Company's Compensation Committee approved a letter agreement between the Company and a
former officer of the Company regarding his early retirement and separation from the Company. Under the terms of the letter
agreement, the vesting of a portion of the officer's remaining unvested stock options and RSUs granted under the 2008 Stock Plan
was accelerated and became fully vested in 2010. There was no incremental compensation cost associated with the modification.
During the fourth quarter of 2009, DPS' Compensation Committee approved a modification to amend all outstanding individual
RSU agreements as of November 19, 2009, to allow for individual RSU awards to participate in dividends in the event of a dividend
declaration, which affected approximately 600 employees. As a result of the modification, the Company recorded an additional
$1 million in stock-based compensation expense during the fourth quarter of 2009.
15. Earnings Per Share
Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of common shares
outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities. The following table presents the
basic and diluted EPS and the Company's basic and diluted shares outstanding (in millions, except per share data):
Basic EPS:
Net income
Weighted average common shares outstanding
Earnings per common share — basic
Diluted EPS:
Net income
Weighted average common shares outstanding
Effect of dilutive securities:
Stock options, RSUs, PSUs and dividend equivalent units
Weighted average common shares outstanding and common stock
equivalents
Earnings per common share — diluted
For the Year Ended December 31,
2011
$ 606
218.7
$ 2.77
$ 606
218.7
2.5
221.2
$ 2.74
2010
$ 528
240.4
$ 2.19
$ 528
240.4
2.2
242.6
$ 2.17
2009
$ 555
254.2
$ 2.18
$ 555
254.2
1.0
255.2
$ 2.17